The new CPU is compatible with ll X58 motherboards with a BIOS update. The CPU is clocked at 3.333GHz, it has 12MB of L3 cache and a TDP of 130W. It will retail for about $1000. For comparison, Intel's quad-core Core i7 975 CPU is also clocked at 3.33GHz, it has 8MB of L3 cache and the same TDP.
As you realize, the i7-980X is expected to show its processing capabilitites in heavily threaded applications that take advantage of the extra cores.

In addition, Game Developers Conference (GDC) attendees can see and experience applications enhanced for this new platform ? including newly released Sega Napoleon Total War, the soon-to-be-released Ubisoft RUSE, Geomerics Enlighten and Cakewalk Sonar.

With Intel GPA v3.0, developers can ensure their titles run on the full spectrum of Intel Core processors (e.g., Intel Core i3, Intel CoreTM i5 with Intel HD Graphics, Intel CoreTM i7, and Intel Core i7 Extreme Edition) and chipsets with a new platform-focused toolset. The platform view for task-based multi-core optimizations and a simplified automated game launch workflow help developers save time. The updated toolkit now includes support for DirectX 10.1 and 64-bit game executables.

Attendees saw and experience games enhanced using Intel GPA and running on Intel HD Graphics, including such titles as Atari Star Trek Online, Electronic Arts Tiger Woods Golf, and more at GDC.

Intel also showcased Blizzard Entertainment's StarCraft II: Wings of Liberty at its booth (South Hall, Booth 1212), giving conference attendees a chance to play the game on a wide variety of Intel-based systems, from high-end Intel Core i7 to mainstream Intel Core i5 platforms, before it launches later this year.